Indian iron ore pellet export offers remained stable during the past week supported by reports of lower shipment forecast by Vale but deals by local pellet producers were limited by lower demand from Chinese steel mills, traders said on Friday.
According to the traders, even the limited deals concluded during the past week were at lower end of the range and exclusively for grade with low alumina content while buyers stayed away from making any fresh bookings for lower grade iron ore pellets.
Market sources said that offers for high grade iron ore pellets with alumina content less than 2 percent remained stable at $110-115/mt CFR China. Iron ore pellets with alumina content higher than 2 percent ranged at $103-105/mt CFR China.
Sources said that Rashmi Group concluded a deal for end-December delivery of high grade iron ore pellets at around $110/mt CFR China. Brahmani River Pellets Limited (BRPL) was reported to have concluded a deal also for end-December delivery at slightly higher level of $112/mt CFR China.
“Vale’s shipment of iron ore pellets during current calendar would be around 7-8 percent lower than forecast earlier provided support to Indian offers,” a member of Pellet Manufacturers’ Association of India (PMAI) said.
“But stable Indian offers did not trigger any fresh buying as most Chinese steel mills have generally completed their raw material re-stocking for lower plant capacity utilization and sintering restrictions during the winter months,” he added.